Retirement Plans

It's never too early to start planning!

LSERS offers three major retirement plans to its members: Regular Service Retirement Plan, Deferred Retirement Option Plan (DROP) and Initial Benefit Retirement Plan (IBRP). In order to retire under the Regular Service Retirement Plan, DROP, or IBRP a member must meet one of the following minimum requirements:

Member on or before 6/30/2010

10 years of service at age 60

25 years of service at age 55

30 years of service at any age

Member on or after 7/1/2010

5 years of service at age 60

Member on or after 7/1/2015

5 years of service at age 62

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Early retirement is also available to members who have 20 or more years of service (excluding military service) and have not yet met the age requirement for regular retirement. Early Retirement is calculated using the same formula as Regular Service Retirement, but the benefit is actuarially reduced based on how far away the member is from Regular Retirement. Early Retirement is not available to members retiring under IBRP.

Benefit Options

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A member who retires can choose to receive benefits under the Maximum Plan, which is the largest benefit available, or under an optional plan, which reduces the member’s benefit, but also provides benefits for a beneficiary after the member’s death. No optional selection shall be effective if a member dies within 30 days after the effective date of retirement.

The selection of a retirement plan is irrevocable once LSERS receives a properly completed affidavit from a member.

Available Retirement Options

The following options are available to members who retire under the Regular Service Retirement or DROP plans. If you retire under IBRP, the Maximum, Option 2 , 2a, 3, 3a, 4, or 4a are available to you. Option 1 is not available to you, under IBRP.

Maximum Option

The member receives the largest benefit payable to him during his lifetime. Upon his death, no payment will be made to a beneficiary if he had received benefits in an amount equal to or greater than the amount of his total contributions to the retirement system. On average, it takes about 13 months after retirement for the contributions to be depleted by the monthly benefit. If the retiree had not received the amount of his total contributions, the beneficiary will receive the balance in a lump sum payment.

Option 1

The member receives a monthly benefit which is slightly less than the Maximum Plan. Upon his death, the beneficiary will receive a lump sum payment if the member died before the amount of his retirement contributions are depleted by a monthly annuity.

Option 2

The member designates one beneficiary. If the beneficiary survives the member, the beneficiary will receive the same monthly benefit for the remainder of his life. If the beneficiary predeceases the member, the member's benefit amount will not change.

Option 2a

The member designates one beneficiary. If the beneficiary survives the member, the beneficiary will receive the same monthly benefit for the remainder of his life. If the beneficiary predeceases the member, the member's benefit will revert to the maximum benefit upon the retirement system's receipt of a certified death certificate. The change will become effective on the first of the month following the date of death.

Option 3

The member designates one beneficiary. If the beneficiary survives the member, the beneficiary will receive one-half the amount paid to the member. If the beneficiary predeceases the member, the member's benefit amount will not change.

Option 3a

The member designates one beneficiary. If the beneficiary survives the member, the beneficiary will receive one-half the member's benefit amount, for the remainder of his life. If the beneficiary predeceases the member, the member's benefit will revert to the maximum benefit upon the retirement system's receipt of a certified death certificate. The change will become effective on the first of the month following the date of death.

Option 4

The member designates one beneficiary. Member receives a reduced monthly benefit determined by the amount the member designates for the beneficiary. Designated beneficiary amount cannot exceed Option 2 benefit amount. If the beneficiary predeceases the member, the member's benefit amount will not change.

Option 4a

The member designates one beneficiary. Member receives a reduced monthly benefit determined by the amount the member designates for the beneficiary. Designated beneficiary amount cannot exceed Option 2 benefit amount. If the beneficiary predeceases the member, the member's benefit will revert to the maximum benefit upon the retirement system's receipt of a certified death certificate. The change will become effective on the first of the month following the date of death.

Important Facts About Beneficiary Designations

The following information may be helpful when providing for a beneficiary upon your death:

Maximum Plan and Option 1

LSERS will divide the funds due equally among all beneficiaries if you name more than one (1) beneficiary and do not specify the percentages.

Options 2, 2a, 3, 3a, 4 and 4a

Your beneficiary designation is irrevocable.

The beneficiary designation for your retirement account cannot ever be changed, even in cases of divorce or your beneficiary predeceases you, as the amount of your benefit is determined in part by your age and the age of your beneficiary at the time of retirement.